On 5/4/2011 6:04 AM, Ignoramus15919 wrote:
I did not get the house. The auction conditions were that I am
completely obligated to follow through with the sale if the seller
(bank) agree. But the bank, has an option of rejecting my bid.

Being used to honest industrial auctions, I paid no heed, and bid $70k
for that house that I talked about.

After I won the bid, I wasted a lot of time and even bought some
cleaning supplies (nothing major) in anticipation.

Anyway, after two weeks or so, I got this email from the auction
company:

``The seller has notified us that they are needing something closer
to $107,000.00 for this property. Is there any way you can come up to
this amount? Please let me know how you wish to proceed. Thanks!''

Well, my answer to this, politely phrased, was that no, I am not going
to come up to that sort of a price, the house is crappy in many ways,
in a flood zone etc. Payin $107k leaves no room for profit and no room
for risk. I am not going to play that sort of a game. And so, the
seller rejected my bid.

I am now wondering if, perhaps, the whole "real estate auction"
concept, as practiced by this auction company, is just a clever "new
age marketing technique"?

What if what they want is to either get a sucker bid, or if the bid is
not a sucker bid, to just get the bidder excited about the property,
and ask for more money later?

In other words, this is a cleverly planned psychological ripoff, and
not an honest "let's just get rid of it quickly at an auction"
approach, like I see in industrial sales.

Any comments?

i


The auctions are legitimate. But. They all depend on the language of the
contract you are obliged to follow. In many auctions the contract will
say whatever the high bid is that's what the house goes for. But the
stipulation is you must pay the entire price in cash and on the spot.

From what you described the contract you were bound by gave the seller
rights to deny bids it deems unacceptable. Obviously the seller wanted
more than 70K for the property you bid on. In this case, you are in a
negotiation with a financial institution not an industrial one or a
private one. That makes a big difference. Financial institutions do some
really goofy and stupid things. But they have lots of money so that's
their right. In your case, they are negotiating with you to try to get
more for the property. You would think they would take the 70K and be
glad it's not less but that's what I mean by financials doing weird
things. They are trying to get a higher bid. If you don't think the
property is worth more than 70K then you decline and see if they counter
offer. Don't be surprised if they don't though and just lose even more
money on it.

In general auctions are a great way to buy real estate at bargain
prices. But since you have to pay up front in cash that means most
people can't get in on it. You just are dealing with a financial
business and that changes things. If I were you I'd keep looking, and
making low bids on property you think you can make a profit on until you
get a deal that succeeds.

Hawke

I did not get the house. The auction conditions were that I am
completely obligated to follow through with the sale if the seller
(bank) agree. But the bank, has an option of rejecting my bid.

Being used to honest industrial auctions, I paid no heed, and bid $70k
for that house that I talked about.

After I won the bid, I wasted a lot of time and even bought some
cleaning supplies (nothing major) in anticipation.

Anyway, after two weeks or so, I got this email from the auction
company:

``The seller has notified us that they are needing something closer
to $107,000.00 for this property. Is there any way you can come up to
this amount? Please let me know how you wish to proceed. Thanks!''

Well, my answer to this, politely phrased, was that no, I am not going
to come up to that sort of a price, the house is crappy in many ways,
in a flood zone etc. Payin $107k leaves no room for profit and no room
for risk. I am not going to play that sort of a game. And so, the
seller rejected my bid.

I am now wondering if, perhaps, the whole "real estate auction"
concept, as practiced by this auction company, is just a clever "new
age marketing technique"?

What if what they want is to either get a sucker bid, or if the bid is
not a sucker bid, to just get the bidder excited about the property,
and ask for more money later?

In other words, this is a cleverly planned psychological ripoff, and
not an honest "let's just get rid of it quickly at an auction"
approach, like I see in industrial sales.

Any comments?

i

On Wed, 04 May 2011 08:04:34 -0500, Ignoramus15919
wrote:

I did not get the house. The auction conditions were that I am
completely obligated to follow through with the sale if the seller
(bank) agree. But the bank, has an option of rejecting my bid.

Being used to honest industrial auctions, I paid no heed, and bid $70k
for that house that I talked about.

After I won the bid, I wasted a lot of time and even bought some
cleaning supplies (nothing major) in anticipation.

Anyway, after two weeks or so, I got this email from the auction
company:

``The seller has notified us that they are needing something closer
to $107,000.00 for this property. Is there any way you can come up to
this amount? Please let me know how you wish to proceed. Thanks!''

Well, my answer to this, politely phrased, was that no, I am not going
to come up to that sort of a price, the house is crappy in many ways,
in a flood zone etc. Payin $107k leaves no room for profit and no room
for risk. I am not going to play that sort of a game. And so, the
seller rejected my bid.

I am now wondering if, perhaps, the whole "real estate auction"
concept, as practiced by this auction company, is just a clever "new
age marketing technique"?

What if what they want is to either get a sucker bid, or if the bid is
not a sucker bid, to just get the bidder excited about the property,
and ask for more money later?

In other words, this is a cleverly planned psychological ripoff, and
not an honest "let's just get rid of it quickly at an auction"
approach, like I see in industrial sales.

Any comments?

i

Sounds bogus. Most auctions I've seen are either absolute or if
there is a reserve it is stated right there and then if it was reached
or not, not 2 weeks later.

On 2011-05-04, Randy333 wrote:
On Wed, 04 May 2011 08:04:34 -0500, Ignoramus15919
wrote:

I did not get the house. The auction conditions were that I am
completely obligated to follow through with the sale if the seller
(bank) agree. But the bank, has an option of rejecting my bid.

Being used to honest industrial auctions, I paid no heed, and bid $70k
for that house that I talked about.

After I won the bid, I wasted a lot of time and even bought some
cleaning supplies (nothing major) in anticipation.

Anyway, after two weeks or so, I got this email from the auction
company:

``The seller has notified us that they are needing something closer
to $107,000.00 for this property. Is there any way you can come up to
this amount? Please let me know how you wish to proceed. Thanks!''

Well, my answer to this, politely phrased, was that no, I am not going
to come up to that sort of a price, the house is crappy in many ways,
in a flood zone etc. Payin $107k leaves no room for profit and no room
for risk. I am not going to play that sort of a game. And so, the
seller rejected my bid.

I am now wondering if, perhaps, the whole "real estate auction"
concept, as practiced by this auction company, is just a clever "new
age marketing technique"?

What if what they want is to either get a sucker bid, or if the bid is
not a sucker bid, to just get the bidder excited about the property,
and ask for more money later?

In other words, this is a cleverly planned psychological ripoff, and
not an honest "let's just get rid of it quickly at an auction"
approach, like I see in industrial sales.

Any comments?

i

Sounds bogus. Most auctions I've seen are either absolute or if
there is a reserve it is stated right there and then if it was reached
or not, not 2 weeks later.


That's what I am used to, as well, in industrial world.

i

On May 4, 9:04*am, Ignoramus15919

I am now wondering if, perhaps, the whole "real estate auction"
concept, as practiced by this auction company, is just a clever "new
age marketing technique"?


Any comments?

i

It could be the auction company or it could be the bank. I usually
give the benefit of the doubt in cases like this. So my guess is that
they expected to get higher bids. And decided to not have a published
reserve but to have it so the bank could refuse if the price was too
low.

If you know which bank owns the house, you might take the time to talk
to them. In a couple of months they might decide they really do need
to sell the house and contact you with a realistic price.

Dan

Ignoramus15919 wrote:
I did not get the house. The auction conditions were that I am
completely obligated to follow through with the sale if the seller
(bank) agree. But the bank, has an option of rejecting my bid.

Being used to honest industrial auctions, I paid no heed, and bid $70k
for that house that I talked about.

After I won the bid, I wasted a lot of time and even bought some
cleaning supplies (nothing major) in anticipation.

Anyway, after two weeks or so, I got this email from the auction
company:

``The seller has notified us that they are needing something closer
to $107,000.00 for this property. Is there any way you can come up to
this amount? Please let me know how you wish to proceed. Thanks!''

Well, my answer to this, politely phrased, was that no, I am not going
to come up to that sort of a price, the house is crappy in many ways,
in a flood zone etc.

(...)

The magic phrase appears to be 'Absolute auction' wherein the seller
can get into legal trouble when they 'bait and switch' as in a
'Reserve auction':

http://www.mightybargainhunter.com/2...e-big-deals-2/

Apparently 'real estate auction bait and switch' is a popular sport:

http://www.trulia.com/voices/Foreclo...hat_is_i-80649

http://www.biggerpockets.com/forums/...high-bid-again


Better luck next time, Iggy.

--Winston

"Ignoramus15919" wrote in message
...
I did not get the house. The auction conditions were that I am
completely obligated to follow through with the sale if the seller
(bank) agree. But the bank, has an option of rejecting my bid.

Being used to honest industrial auctions, I paid no heed, and bid $70k
for that house that I talked about.

After I won the bid, I wasted a lot of time and even bought some
cleaning supplies (nothing major) in anticipation.

Anyway, after two weeks or so, I got this email from the auction
company:

``The seller has notified us that they are needing something closer
to $107,000.00 for this property. Is there any way you can come up to
this amount? Please let me know how you wish to proceed. Thanks!''

Well, my answer to this, politely phrased, was that no, I am not going
to come up to that sort of a price, the house is crappy in many ways,
in a flood zone etc. Payin $107k leaves no room for profit and no room
for risk. I am not going to play that sort of a game. And so, the
seller rejected my bid.

I am now wondering if, perhaps, the whole "real estate auction"
concept, as practiced by this auction company, is just a clever "new
age marketing technique"?

What if what they want is to either get a sucker bid, or if the bid is
not a sucker bid, to just get the bidder excited about the property,
and ask for more money later?

In other words, this is a cleverly planned psychological ripoff, and
not an honest "let's just get rid of it quickly at an auction"
approach, like I see in industrial sales.

Any comments?

i

Sounds like reserve price auction.

Have you considered looking into a short sale ?
If you have a banker friend you can probobaly get a
good deal. Your lawyer can explain how it works as
a buyer.

Best Regards
Tom.

On 2011-05-04, wrote:
On May 4, 9:04?am, Ignoramus15919

I am now wondering if, perhaps, the whole "real estate auction"
concept, as practiced by this auction company, is just a clever "new
age marketing technique"?

It could be the auction company or it could be the bank. I usually
give the benefit of the doubt in cases like this. So my guess is that
they expected to get higher bids. And decided to not have a published
reserve but to have it so the bank could refuse if the price was too
low.

The bid was a good deal. The money they want, is not a good deal.

If you know which bank owns the house, you might take the time to talk
to them. In a couple of months they might decide they really do need
to sell the house and contact you with a realistic price.

It is some kind of a weird entity, porobably a holdover of the bubble,
it was called "special purpose vehicle" and its name ends in "III".

I am going to just give up on it.

i

Ignoramus15919 wrote:

I did not get the house. The auction conditions were that I am
completely obligated to follow through with the sale if the seller
(bank) agree. But the bank, has an option of rejecting my bid.

Well i wasn't going to say anything to jinx your deal, but someone just
recently told me of several foreclosure auctions near me that ended very
similar.



Being used to honest industrial auctions, I paid no heed, and bid $70k
for that house that I talked about.

After I won the bid, I wasted a lot of time and even bought some
cleaning supplies (nothing major) in anticipation.

Anyway, after two weeks or so, I got this email from the auction
company:

``The seller has notified us that they are needing something closer
to $107,000.00 for this property. Is there any way you can come up to
this amount? Please let me know how you wish to proceed. Thanks!''

Well, my answer to this, politely phrased, was that no, I am not going
to come up to that sort of a price, the house is crappy in many ways,
in a flood zone etc. Payin $107k leaves no room for profit and no room
for risk. I am not going to play that sort of a game. And so, the
seller rejected my bid.

I'm surprised they came down as far as they did. Banks are really
tenaciously hanging on to billions of dollars in houses that are not
getting any more valuable.





I am now wondering if, perhaps, the whole "real estate auction"
concept, as practiced by this auction company, is just a clever "new
age marketing technique"?

What if what they want is to either get a sucker bid, or if the bid is
not a sucker bid, to just get the bidder excited about the property,
and ask for more money later?

In other words, this is a cleverly planned psychological ripoff, and
not an honest "let's just get rid of it quickly at an auction"
approach, like I see in industrial sales.

The housing market is on the brink of a precipice. You were going to get
a deal at 25% what the market value was a few years ago. If they start
to let that happen the whole market may collapse.
This is what happened in Japan. During the 90's market value of houses
fell to 15% of their previous value. In the US today (thanks to the FED)
the banks don't need the cash. They can hang on for a while.

-jim





Any comments?

i

On Wed, 04 May 2011 08:04:34 -0500, Ignoramus15919
wrote:

I did not get the house. The auction conditions were that I am
completely obligated to follow through with the sale if the seller
(bank) agree. But the bank, has an option of rejecting my bid.

Being used to honest industrial auctions, I paid no heed, and bid $70k
for that house that I talked about.

After I won the bid, I wasted a lot of time and even bought some
cleaning supplies (nothing major) in anticipation.

Anyway, after two weeks or so, I got this email from the auction
company:

``The seller has notified us that they are needing something closer
to $107,000.00 for this property. Is there any way you can come up to
this amount? Please let me know how you wish to proceed. Thanks!''

Well, my answer to this, politely phrased, was that no, I am not going
to come up to that sort of a price, the house is crappy in many ways,
in a flood zone etc. Payin $107k leaves no room for profit and no room
for risk. I am not going to play that sort of a game. And so, the
seller rejected my bid.

What? Didn't you originally say the property was NOT in a flood zone?


I am now wondering if, perhaps, the whole "real estate auction"
concept, as practiced by this auction company, is just a clever "new
age marketing technique"?

Welcome to Chicago, Illinois politics?
(Your friends Barry and Michelle studied there!)


What if what they want is to either get a sucker bid, or if the bid is
not a sucker bid, to just get the bidder excited about the property,
and ask for more money later?

In other words, this is a cleverly planned psychological ripoff, and
not an honest "let's just get rid of it quickly at an auction"
approach, like I see in industrial sales.

Check with another real estate company or two. Tell them what
happened, show them your contract, etc. The auction company may have
been trying to weasel extra money out of you illegally (trying to pad
their commission) and you may have had some legal claims as to the
house before you dropped it. Illinois RE laws regulate it, I believe.
Check into those. If there was no minimum or reserve on the auction,
you may have (had) legal rights. That contract giving the bank the
sole option may have stepped over the line.

But check into it. Next time you'll know.

--
Science may have found a cure for most evils; but it has found
no remedy for the worst of them all--the apathy of human beings.
-- Helen Keller

On 2011-05-04, Winston wrote:
Ignoramus15919 wrote:
I did not get the house. The auction conditions were that I am
completely obligated to follow through with the sale if the seller
(bank) agree. But the bank, has an option of rejecting my bid.

Being used to honest industrial auctions, I paid no heed, and bid $70k
for that house that I talked about.

After I won the bid, I wasted a lot of time and even bought some
cleaning supplies (nothing major) in anticipation.

Anyway, after two weeks or so, I got this email from the auction
company:

``The seller has notified us that they are needing something closer
to $107,000.00 for this property. Is there any way you can come up to
this amount? Please let me know how you wish to proceed. Thanks!''

Well, my answer to this, politely phrased, was that no, I am not going
to come up to that sort of a price, the house is crappy in many ways,
in a flood zone etc.

(...)

The magic phrase appears to be 'Absolute auction' wherein the seller
can get into legal trouble when they 'bait and switch' as in a
'Reserve auction':

http://www.mightybargainhunter.com/2...e-big-deals-2/

Apparently 'real estate auction bait and switch' is a popular sport:

http://www.trulia.com/voices/Foreclo...hat_is_i-80649

http://www.biggerpockets.com/forums/...high-bid-again

This actually was Williams and Williams.

I agree 100% with the sentiment expressed in the URL above:

``I just bid for and won my third Williams and Williams house
auction. The latest one was last month for 3159 Sarah Ann in Lafayette
IN. The sellers rejected my winning bid all three times. The first two
homes were owned by Fannie Mae and the third was owned by a relocation
company.

Williams & Williams used to brag about how 90-95% of their sellers
accepted the high bids even though they have the right to refuse it. I
see that they have removed this from their sales literature. Good
thing because in my experience it is a joke.

Williams and Williams are a bunch of clowns whose sellers will reject
the high bid. I will not be wasting my time in the future bidding at
any Williams & Williams auctions.''

Great finds Winston.

i


Better luck next time, Iggy.

--Winston

On 2011-05-04, azotic wrote:

"Ignoramus15919" wrote in message
...
I did not get the house. The auction conditions were that I am
completely obligated to follow through with the sale if the seller
(bank) agree. But the bank, has an option of rejecting my bid.

Being used to honest industrial auctions, I paid no heed, and bid $70k
for that house that I talked about.

After I won the bid, I wasted a lot of time and even bought some
cleaning supplies (nothing major) in anticipation.

Anyway, after two weeks or so, I got this email from the auction
company:

``The seller has notified us that they are needing something closer
to $107,000.00 for this property. Is there any way you can come up to
this amount? Please let me know how you wish to proceed. Thanks!''

Well, my answer to this, politely phrased, was that no, I am not going
to come up to that sort of a price, the house is crappy in many ways,
in a flood zone etc. Payin $107k leaves no room for profit and no room
for risk. I am not going to play that sort of a game. And so, the
seller rejected my bid.

I am now wondering if, perhaps, the whole "real estate auction"
concept, as practiced by this auction company, is just a clever "new
age marketing technique"?

What if what they want is to either get a sucker bid, or if the bid is
not a sucker bid, to just get the bidder excited about the property,
and ask for more money later?

In other words, this is a cleverly planned psychological ripoff, and
not an honest "let's just get rid of it quickly at an auction"
approach, like I see in industrial sales.

Any comments?

i

Sounds like reserve price auction.

With a reserve auction, you know the outcome right away.

Have you considered looking into a short sale ?
If you have a banker friend you can probobaly get a
good deal. Your lawyer can explain how it works as
a buyer.

I don;t know, have not decided yet.

i

In article ,
says...
On Wed, 04 May 2011 08:04:34 -0500, Ignoramus15919
wrote:

I did not get the house. The auction conditions were that I am
completely obligated to follow through with the sale if the seller
(bank) agree. But the bank, has an option of rejecting my bid.

Being used to honest industrial auctions, I paid no heed, and bid $70k
for that house that I talked about.

After I won the bid, I wasted a lot of time and even bought some
cleaning supplies (nothing major) in anticipation.

Anyway, after two weeks or so, I got this email from the auction
company:

``The seller has notified us that they are needing something closer
to $107,000.00 for this property. Is there any way you can come
up to
this amount? Please let me know how you wish to proceed.
Thanks!''

Well, my answer to this, politely phrased, was that no, I am not going
to come up to that sort of a price, the house is crappy in many ways,
in a flood zone etc. Payin $107k leaves no room for profit and no room
for risk. I am not going to play that sort of a game. And so, the
seller rejected my bid.

I am now wondering if, perhaps, the whole "real estate auction"
concept, as practiced by this auction company, is just a clever "new
age marketing technique"?

What if what they want is to either get a sucker bid, or if the bid is
not a sucker bid, to just get the bidder excited about the property,
and ask for more money later?

In other words, this is a cleverly planned psychological ripoff, and
not an honest "let's just get rid of it quickly at an auction"
approach, like I see in industrial sales.

Any comments?

i

Sounds bogus. Most auctions I've seen are either absolute or if
there is a reserve it is stated right there and then if it was reached
or not, not 2 weeks later.

In the real estate auctions I have attended, the opening bids were real
low. A representative of the owner (bank) just sits there and casually
raises the bid $10,000 at a time until it hits their real selling price
(as long as there are other bidders). Then he sits back and sees if
there are further bids. There were *none* at the two auctions I have
been at. No houses sold and the auctioneer announces, "Property remains
with the seller" or some such.

--
DT

On 5/4/2011 6:04 AM, Ignoramus15919 wrote:
I did not get the house. The auction conditions were that I am
completely obligated to follow through with the sale if the seller
(bank) agree. But the bank, has an option of rejecting my bid.

Being used to honest industrial auctions, I paid no heed, and bid $70k
for that house that I talked about.

After I won the bid, I wasted a lot of time and even bought some
cleaning supplies (nothing major) in anticipation.

Anyway, after two weeks or so, I got this email from the auction
company:

``The seller has notified us that they are needing something closer
to $107,000.00 for this property. Is there any way you can come up to
this amount? Please let me know how you wish to proceed. Thanks!''

Well, my answer to this, politely phrased, was that no, I am not going
to come up to that sort of a price, the house is crappy in many ways,
in a flood zone etc. Payin $107k leaves no room for profit and no room
for risk. I am not going to play that sort of a game. And so, the
seller rejected my bid.

I am now wondering if, perhaps, the whole "real estate auction"
concept, as practiced by this auction company, is just a clever "new
age marketing technique"?

What if what they want is to either get a sucker bid, or if the bid is
not a sucker bid, to just get the bidder excited about the property,
and ask for more money later?

In other words, this is a cleverly planned psychological ripoff, and
not an honest "let's just get rid of it quickly at an auction"
approach, like I see in industrial sales.

Any comments?


What you are describing is, "getting the buyer emotionally invested in
the process." Lots of salesmen and lots of businesses use this
practice. It may also be a bait and switch, although if the upfront
terms allowed for the rejection of any bid then it may not be the latter.

On 05/04/2011 08:04 AM, Ignoramus15919 wrote:

Anyway, after two weeks or so, I got this email from the auction
company:

``The seller has notified us that they are needing something closer
to $107,000.00 for this property. Is there any way you can come up to
this amount? Please let me know how you wish to proceed. Thanks!''

Sounds like fraudulent business practices to me. If you want the house,
I'd file a complaint with the attorney general's office.

If they simply rejected your bid, that might be legit. But, to come
back and ask for more money, that is clear fraud in my opinion (not a
LEGAL opinion, for sure.)

Jon

"Ignoramus15919" wrote in message
...
I did not get the house. The auction conditions were that I am
completely obligated to follow through with the sale if the seller
(bank) agree. But the bank, has an option of rejecting my bid.

Being used to honest industrial auctions, I paid no heed, and bid $70k
for that house that I talked about.

After I won the bid, I wasted a lot of time and even bought some
cleaning supplies (nothing major) in anticipation.

Anyway, after two weeks or so, I got this email from the auction
company:

``The seller has notified us that they are needing something closer
to $107,000.00 for this property. Is there any way you can come up to
this amount? Please let me know how you wish to proceed. Thanks!''

Well, my answer to this, politely phrased, was that no, I am not going
to come up to that sort of a price, the house is crappy in many ways,
in a flood zone etc. Payin $107k leaves no room for profit and no room
for risk. I am not going to play that sort of a game. And so, the
seller rejected my bid.

I am now wondering if, perhaps, the whole "real estate auction"
concept, as practiced by this auction company, is just a clever "new
age marketing technique"?

What if what they want is to either get a sucker bid, or if the bid is
not a sucker bid, to just get the bidder excited about the property,
and ask for more money later?

In other words, this is a cleverly planned psychological ripoff, and
not an honest "let's just get rid of it quickly at an auction"
approach, like I see in industrial sales.

Any comments?

i

At the Sheriff's auction or one of the other Judicial sales auction houses,
the first bid is from the bank. Usually for the remaining amount due. If you
are the high bidder at one of these, the homeowner still has some legal
wrangling he can do, and you may or may not ever get a deed. Otherwise the
bank as the high bidder wins the auction

Once the bank takes possession of the deed, they try to sell it because they
don't want to be in the real estate business.
They don't want to lose money either. So unless the property is distressed
or the previous owner had paid down the mortgage to a low number, you
probably won't get a steal.

Move on and bid on another one, you might get lucky.

Paul K. Dickman

On 05/04/2011 06:04 AM, Ignoramus15919 wrote:
I did not get the house. The auction conditions were that I am
completely obligated to follow through with the sale if the seller
(bank) agree. But the bank, has an option of rejecting my bid.

Being used to honest industrial auctions, I paid no heed, and bid $70k
for that house that I talked about.

After I won the bid, I wasted a lot of time and even bought some
cleaning supplies (nothing major) in anticipation.

Anyway, after two weeks or so, I got this email from the auction
company:

``The seller has notified us that they are needing something closer
to $107,000.00 for this property. Is there any way you can come up to
this amount? Please let me know how you wish to proceed. Thanks!''

Well, my answer to this, politely phrased, was that no, I am not going
to come up to that sort of a price, the house is crappy in many ways,
in a flood zone etc. Payin $107k leaves no room for profit and no room
for risk. I am not going to play that sort of a game. And so, the
seller rejected my bid.

I am now wondering if, perhaps, the whole "real estate auction"
concept, as practiced by this auction company, is just a clever "new
age marketing technique"?

What if what they want is to either get a sucker bid, or if the bid is
not a sucker bid, to just get the bidder excited about the property,
and ask for more money later?

In other words, this is a cleverly planned psychological ripoff, and
not an honest "let's just get rid of it quickly at an auction"
approach, like I see in industrial sales.

Any comments?

I'd at least check with the state to see if what they're doing is legal.
It certainly sounds like bait and switch to me -- but they spelled
that out up front, and the protections against that are often limited to
consumers, not (presumed) business people.

It seems like they could just have an up-front reserve auction, and
start the bidding at that, instead of a fake auction. Sending them a
nice polite letter indicating your intent to never do business with them
again, and copying it to your local paper, may be a worthwhile thing to do.

--

Tim Wescott
Wescott Design Services
http://www.wescottdesign.com

Do you need to implement control loops in software?
"Applied Control Theory for Embedded Systems" was written for you.
See details at http://www.wescottdesign.com/actfes/actfes.html

On 2011-05-04, Jon Elson wrote:
On 05/04/2011 08:04 AM, Ignoramus15919 wrote:

Anyway, after two weeks or so, I got this email from the auction
company:

``The seller has notified us that they are needing something closer
to $107,000.00 for this property. Is there any way you can come up to
this amount? Please let me know how you wish to proceed. Thanks!''

Sounds like fraudulent business practices to me. If you want the house,
I'd file a complaint with the attorney general's office.

If they simply rejected your bid, that might be legit. But, to come
back and ask for more money, that is clear fraud in my opinion (not a
LEGAL opinion, for sure.)

I would not call it above board, myself, but at the same time, it is
not illegal and is in accordance with the auction terms. It is a shady
practice, however.

i

On May 4, 6:04*am, Ignoramus15919 ignoramus15...@NOSPAM.
15919.invalid wrote:
I did not get the house. The auction conditions were that I am
completely obligated to follow through with the sale if the seller
(bank) agree. But the bank, has an option of rejecting my bid.

Being used to honest industrial auctions, I paid no heed, and bid $70k
for that house that I talked about.

After I won the bid, I wasted a lot of time and even bought some
cleaning supplies (nothing major) in anticipation.

Anyway, after two weeks or so, I got this email from the auction
company:

* *``The seller has notified us that they are needing something closer
* * *to $107,000.00 for this property. *Is there any way you can come up to
* * *this amount? *Please let me know how you wish to proceed. Thanks!''

Well, my answer to this, politely phrased, was that no, I am not going
to come up to that sort of a price, the house is crappy in many ways,
in a flood zone etc. Payin $107k leaves no room for profit and no room
for risk. I am not going to play that sort of a game. And so, the
seller rejected my bid.

I am now wondering if, perhaps, the whole "real estate auction"
concept, as practiced by this auction company, is just a clever "new
age marketing technique"?

What if what they want is to either get a sucker bid, or if the bid is
not a sucker bid, to just get the bidder excited about the property,
and ask for more money later?

In other words, this is a cleverly planned psychological ripoff, and
not an honest "let's just get rid of it quickly at an auction"
approach, like I see in industrial sales.

Any comments?

i

I would write back and explain that you bid with the intention of
exchanging your money for the property as is. If you had been
disappointed with the property after the bank had your money, then you
would have just been stuck. Tell them that you will either take
delivery as offered or they can pound salt and the only reason you
will go to any more of there auctions is to inform bidders that they
are a bunch of welshing hornswaglers.

Roger Shoaf

Ignoramus15919 wrote:

On 2011-05-04, Jon Elson wrote:
On 05/04/2011 08:04 AM, Ignoramus15919 wrote:

Anyway, after two weeks or so, I got this email from the auction
company:

``The seller has notified us that they are needing something closer
to $107,000.00 for this property. Is there any way you can come
up to
this amount? Please let me know how you wish to proceed.
Thanks!''

Sounds like fraudulent business practices to me. If you want the house,
I'd file a complaint with the attorney general's office.

If they simply rejected your bid, that might be legit. But, to come
back and ask for more money, that is clear fraud in my opinion (not a
LEGAL opinion, for sure.)

I would not call it above board, myself, but at the same time, it is
not illegal and is in accordance with the auction terms. It is a shady
practice, however.
Well, I am not a lawyer, but to advertise for bids, and then reject the bid
and ask for more, may, in fact, be illegal. The bid is a "contract". They
have this out written into the contract, but I think it would be considered
a deceptive marketing practice to reject the contract and then ask for
more. You might call the BBB and see what they say about it.

Jon

Rejecting your bid outright, for any reason or no reason, would be in
line with the terms you stated. Asking for more money is bait and
switch, not covered by the terms you stated, at least unethical and
quite possibly illegal.

Drop a note to any newspapers or websites they advertised this fake
"auction" in revealing details and naming names. Bank, auction house,
whoever is involved that you can run down names for. They handed you a
brush full of tar, the least you can do is smear them with it.

If they want to fart around with a reserve price, the minimally correct
response at the time of auction is to say that the reserve has not been
met and there is no sale. The actual correct procedure is to start
bidding at the reserve price and if nobody bids, it don't sell. When
they care to admit that the place is not worth the price they want, then
it might get to selling - otherwise the town/city will soon have it
since they probably are not paying taxes on it, and the town/city will
auction the thing in a real auction.

--
Cats, coffee, chocolate...vices to live by

On 2011-05-04, Paul K. Dickman wrote:

Move on and bid on another one, you might get lucky.


I understand this a little better now, after having read countless
forum threads about "house auction rejected by bank".

The auction company would love to see 100% of sales close, to get
commissions and move on.

It is the banks and SPVs that are playing games, listing homes on
auctions in hopes of sucker bids, and if none materialize, as a basis
for negotiations. They routinely keep listing a house and putting it
on various auctions etc.

The result of this, of course, is that bidders are less inclined to
bid.

i

On Wed, 04 May 2011 08:46:17 -0700, Larry Jaques
wrote:


Check with another real estate company or two. Tell them what
happened, show them your contract, etc. The auction company may have
been trying to weasel extra money out of you illegally (trying to pad
their commission) and you may have had some legal claims as to the
house before you dropped it. Illinois RE laws regulate it, I believe.
Check into those. If there was no minimum or reserve on the auction,
you may have (had) legal rights. That contract giving the bank the
sole option may have stepped over the line.

But check into it. Next time you'll know.

I agree 100% with Larry. Check into it!!

Gunner

--
"If I say two plus two is four and a Democrat says two plus two is eight,
it's not a partial victory for me when we agree that two plus two is
six. " Jonah Goldberg (modified)